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2 Bumps

How does forclosure work?

I am two months behind on our mortgage. We got a notice in the mail that we have until August 18th to pay what we are behind in or they will accelerate the full amount owed. I had lost my job and just found another job and won't have the money until the 20th. I plan on calling them to see if they will work with us if we pay the amount owed on the 20th. If they don't, what can we expect? How long will we be able to stay in our house before we are kicked out?

Answer Question
 
Anonymous

Asked by Anonymous at 11:53 PM on Aug. 13, 2010 in Money & Work

Answers (8)
  • i'm pretty sure they will work with you on it. gl.... not sure about how long and all that.
    princessbeth79

    Answer by princessbeth79 at 11:55 PM on Aug. 13, 2010

  • they should work with you if your only two days late. But I think if they do foreclose they can change the locks on your door but not sure.. SOrry no help here is a bump
    Claudiomom

    Answer by Claudiomom at 11:56 PM on Aug. 13, 2010

  • Call. Tomorrow. They will wait two days for the money, but if you don't call they will move forward.
    lovinangels

    Answer by lovinangels at 11:57 PM on Aug. 13, 2010

  • I was behind on my morgage for a while too. YOU have to communicat with them. It really depends on which company you are with. I was 4 months behind and they weren't too fussy. With the rental house we owed, we didn't pay for ever and they didn't do anything. We let that house go. We had to, but we are current on all of our bills now.
    Good luck
    dancinintherain

    Answer by dancinintherain at 11:57 PM on Aug. 13, 2010

  • I believe that if they foreclose and sell the property at public auction you still have 6 mo (and you can remain in the house during this time) to redeem the amount due but it would be the FULL amount at that point. I find it very hard to believe that they wouldn't wait for 2 days. Can you try to refinance it or move the delinquent payments to the end of the loan? A legit company will work with you.
    ramawin

    Answer by ramawin at 12:16 AM on Aug. 14, 2010

  • Foreclosures happen very differently state to state. If you call and try to work with the bank, at the very least, it will give you a bit more time.
    JulieJacobKyle

    Answer by JulieJacobKyle at 11:39 AM on Aug. 14, 2010

  • Julie is right. It will depend on your state. California and Florida (maybe some others as well??) have made it really hard for banks to foreclose. Other states are more lenient.

    I imagine that if you call them- or better yet, go in and talk to the branch manager- and explain what is going on then they will be willing to work something out with you.

    It costs money for banks to foreclose plus there is added risk. It is- most of the time- to the banks benefit, as well as yours, to work out something.

    Congrats on the new job! I hope things turn out well :)
    Erica_Smerica

    Answer by Erica_Smerica at 10:29 PM on Aug. 14, 2010

  • Call right away. If they won't let you pay = 2 days late, then apply for a loan modification. Basically it is a forced refi where they roll what you currently owe back into you mortgage.

    We just did this. Our interest rate went down 1.5% and our payments went down by over $200 a month. You will need to supply a letter of hardship, paystubs for 2MONTHS for both you and hubby, 2 MONTHS bank statements as well as 2 yrs tax returns
    Maureen-MD

    Answer by Maureen-MD at 10:32 PM on Aug. 14, 2010

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